October 4 Chart of the Day - Visa
If you've been following our Chart of the Day posts and have benefited from one or more of them we ask that you consider participating our NEW Pay It Forward - Traders Helping Traders program.
According to published reports, Visa (V) is one of Warren Buffet's top 30 holdings so beyond the typical news cycles the company receives attention for being on the "Oracle of Omaha's" most cherished list.
But is the company worthy of all the extra attention? Maybe...
From a price action technical analysis perspective we really don't care whose list a company may be on or what analysts think or say about a company.
All we care about is price action.
In looking at the monthly chart we see that price recently flirted with $252.67 all time highs (ATH) before backing off. This was the second attempt in the last year so could there be a third attempt to finally break above?
We take a look at the weekly chart to further analyze the question: "Where could price go?"
Technically speaking yes. $270 is in play so to speak from a Fibonacci perspective. But since there's no historical price action at that level it's pure speculation. But that speculation is based on math and probabilities...
We also notice that price has formed a channel in the pattern of a bearish flag. So there could be more downside coming before price decides if it wants to make another run at new ATHs.
We, like the Oracle of Omaha himself, will be watching this chart closely into the future.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
Take a look at the charts and let us know what you think.
We'd like to hear from you in the comments sections.
Have a chart you'd like to see featured?
Send requests at https://stockchartpros.com/community/contact
Would you like charts like this delivered directly to you every day? ChartPros Trade Room is offering an OPEN HOUSE 7-day free trial at this link.